A new WalletHub study looked at property taxes, personal income taxes, and sales and excise taxes, as a percentage of total personal income, and unsurprisingly, New York has rates of interest as tall as its skyscrapers.
According to the report, the average American household pays $10,000 in federal income taxes each year; however, where you live and the state and local state tax rate determine how much a family pays in total taxes each year.
To determine which states tax their residents the most aggressively, WalletHub compared all 50 states based on the three components of the state tax burden (property taxes, personal income taxes, and sales and tax). consumption) as a share of total personal income.
TAX BURDEN IN NEW YORK (1=HIGHEST, 25=AVERAGE):
1st – Global Tax Burden (12.75%)
6th – Property Tax Charge (4.43%)
1º – Charge of the Tax on the Income of Physical Persons (4.90%)
25 – Total burden of sales tax and excise duty (3.42%)
The formula revealed that the highest tax burden in the country is New York (12.75%), followed by Hawaii (12.70%), Maine (11.42%), Vermont (11.13%) and Minnesota (10.2%).
The states with the lowest tax burden in the country are Alaska (5.06%), Tennessee (5.75%), Delaware (6.22%), Wyoming (6.32%) and New Hampshire (6.41%).
It seems likely that having the highest tax burden in the entire country would be a drain on the state’s economy, and there are some indications this is the case, but experts say it’s how those tax dollars are spent that determines the effect. of a high tax burden on growth.
Some states collect more tax revenue, but use that revenue to provide a menu of public services that can make a significant contribution to economic growth. Examples are infrastructure projects and investments in human capital through public schools and universities and job training programs. The right balance comes in raising the amount of revenue to provide desired public services without having a tax burden high enough to drive some taxpayers out of the area.
But the Census and recent surveys reveal that New York has lost part of its population rapidly in recent years and one of the factors is its taxes, unaffordable for many.
A new poll found that nearly four in 10 voters in New York are considering moving to another state because of high taxes.
The poll, released this month by Zogby , found that 38.9% of voters are “considering” or have already “made plans” to move, up five points from the previous month. If just half do so, New York could lose millions of residents and enormous political influence, not to mention the tax revenue these taxpayers pay.
Notably, 36.7% say their main reason for wanting to move is that taxes are “too high,” a complaint cited by more people than any other. Even a quarter of “progressives,” 32% of “liberals,” and 38% of “moderates” cite high taxes as their biggest motivation for leaving New York.
On the other hand, 48% of those surveyed said that crime is the number one priority for the next government, compared to 43% who cited taxes.
26% of those earning less than $35,000 a year also cited excessively high taxes as their main motivation for leaving the state, as did 27% of those earning between $35,000 and $75,000, 41% of earning between $75,000 and $100,000 and 48% in the $100,000 to $150,000 range.
The second most cited reason for leaving New York is the desire to find a “better job or economic opportunity,” which is also related to the first: high taxes, so companies choose to take jobs away, reducing those opportunities.
That helps explain why New York so often suffers more unemployment than other places: In January, the national unemployment rate was 4%, but 5.3% in the state (and 7.6% in the city).